The green area gives an example of how and why the growth in the income of the top earners has caused the increase in taxes they pay
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The green area gives an example of how and why the growth in the income of the top earners has caused the increase in taxes they pay |
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| 1992 tax rate | % of total | After tax Income | |||||||||||||||||
| Income in 1992 | Tax rate | Tax amt | tax collected | ||||||||||||||||
| Top 10% | $1,000,000 | 26.00% | $260,000.00 | 97.20% | $740,000.00 | ||||||||||||||
| Lower 90% | $50,000 | 15.00% | $7,500.00 | 2.80% | |||||||||||||||
| $267,500.00 | |||||||||||||||||||
| Current | % of total | ||||||||||||||||||
| Income now | Tax rate | Tax amt | tax collected | ||||||||||||||||
| Top 10% | $10,000,000 | 17.00% | $1,700,000.00 | $0.9965 | $8,300,000.00 | ||||||||||||||
| Lower 90% | $50,000 | 12.00% | $6,000.00 | $0.0035 | |||||||||||||||
| $1,706,000.00 | |||||||||||||||||||
| 1 - Notice how the income has grown from 1992 to 2011. The Income of the top 10% is 10 times that of 1992 | |||||||||||||||||||
| 2 - The Income of the lower 90% has not grown or has decreased | |||||||||||||||||||
| 3 -Because of the increase income of the top 10%, their total taxes collected have increased and their share of that has also increased | |||||||||||||||||||
| 4 - Because the income of the lower 90% has not increased, their taxes have not increased or have actually decreased. | |||||||||||||||||||
| And their share of the total collected taxes have decreased | |||||||||||||||||||
| The high income earners have seen their tax rate go from 26% to 17% since 1992 | |||||||||||||||||||
| Looking back even further to 1915, an era in which the Rockefellers and Carnegies dominated American industry, | |||||||||||||||||||
| the richest 1% of Americans earned roughly 18% of all income. | |||||||||||||||||||
| Today, the top 1% account for 24% of all income. | |||||||||||||||||||
| A small percentage of the top earners pay a very high percent of all the taxes collected | |||||||||||||||||||
| Ask him/her (or look it up yourself) what percentage of all income that small percentage of top earners make | |||||||||||||||||||
| The top earners pay a large percentage of the total taxes paid because they make a very large percent of the total income. | |||||||||||||||||||
| The share of total income going to the top 1 percent of earners, which stood at 8.9 percent in 1976, rose to 23.5 percent by 2007 | |||||||||||||||||||
| but during the same period, the average inflation-adjusted hourly wage declined by more than 7 percent. | |||||||||||||||||||
| http://www.nytimes.com/2010/10/17/business/17view.html | |||||||||||||||||||
| For
it turns out that rising inequality has created enormous losses and few
gains, even for its ostensible beneficiaries. |
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